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Green Financing:
Accelerating the Transition to
Deforestation-Free Supply Chains

Money shapes the world; the way we grow, trade, and consume. Today, it can also shape how we protect our forests. Across global supply chains, financial decisions determine whether land is cleared or conserved, whether smallholders can invest in sustainable practices, and whether businesses can make the shift to deforestation-free production.

Sustainable finance plays a key role here, for example, in the two following ways:

  • First, it opens access to capital for smallholder farmers who want to invest in sustainable land-use practices, such as environmentally friendly agriculture, traceability systems, or forest restoration.
  • Second, it enables financial institutions to assess the environmental impact of their investments, ensuring funds flow away from deforestation and toward sustainable, climate-friendly activities.


In short: sustainable finance helps channel resources to those shaping a more sustainable future.

How Finance Drives Change

The financial system is a catalyst for achieving global sustainability and climate goals. SAFE recognizes that to protect forests, finance must work hand in hand with sustainability.

From early awareness-raising on topics like green bonds, scenario analysis, and risk management, SAFE’s approach has evolved into a holistic framework for sustainable and green finance. Today, it combines capacity building, policy engagement, and cross-sector collaboration, cooperating with partner countries and stakeholders for unlocking the potential of finance to drive sustainable transformation.

Partnering with Climate & Company

To deepen the financial dimension of deforestation-free supply chains, SAFE collaborates with Climate & Company – one of Europe’s leading sustainable finance think tanks.

Climate & Company brings together a team of international experts in climate and biodiversity finance, policy, and communication. Acting as a bridge between finance, business, policy, and science, the organization provides cutting-edge intelligence on sustainable finance regulation, supply-chain frameworks, and biodiversity finance.

Together, SAFE and the Climate & Company team, are building knowledge, fostering dialogue, and designing finance-focused approaches that strengthen the enabling environment for smallholder farmers and stakeholders across partner countries.

SAFE’s Workstreams on Green Financing

SAFE and Climate & Company collaborate through four interconnected workstreams that combine research, capacity building, and global advocacy.

Climate & Company has promoted a series of bi-monthly “Finance Briefings” and capacity-building sessions to:

  • Introduce key sustainable finance instruments
  • Share case studies, gender perspectives, and practical examples
  • Strengthen the ability of partners to mobilize finance for smallholders and vulnerable groups in deforestation-free supply chains


Climate & Company experts also contribute to international events, workshops, and policy dialogues, ensuring finance remains a central pillar of the deforestation-free transition.

Climate & Company is developing a comprehensive database of financial mechanisms that support the transition to deforestation-free supply chains.

This includes:

  • Analysis of financial products relevant to EUDR commodities (coffee, cocoa, palm oil, etc.)
  • Mapping of global and country-level initiatives accessible to smallholders
  • Identification of key events and networks promoting inclusive finance


These mappings help align investment priorities with sustainability objectives and the needs of producers on the ground.

Designing analytical frameworks help to scale inclusive and effective financial mechanisms.

This involves:

  • Identifying success factors for smallholder financing;
  • Collecting best practices from around the world;
  • Generating policy and investment recommendations for governments, development institutions, and private actors.


The goal is to create finance-ready ecosystems that enable smallholders to thrive in deforestation-free value chains.

Engagement in global and regional platforms drives dialogue and collaboration on sustainable finance.

These include:

  • CBD COP 16
  • Workshops with EU institutions, ministries, think tanks, and financial actors
  • G20 events and global forums on EUDR implementation, smallholder finance, and sustainable supply chains


These engagement, helps shaping international conversations on how finance can protect forests, empower producers, and sustain global biodiversity.

Learn More

SAFE’s Green Finance activities aim to:

  • Strengthen financial inclusion for smallholder farmers;
  • Mobilize public and private capital for deforestation-free value chains;
  • Support the creation of finance-ready ecosystems aligned with the EU Deforestation Regulation (EUDR) and global sustainability goals.


Together, we can make finance work for forests and for the people who depend on them.

The capital allocated today will shape ecosystems and the production and consumption patterns of tomorrow.

UN Environment

Key Concepts

Climate Finance

“Climate finance refers to local, national or transnational financing — drawn from public, private and alternative sources — that supports mitigation and adaptation actions addressing climate change.”
(UNFCCC)
Aligned with Article 2.1(c) of the Paris Agreement, the goal is to make financial flows consistent with low-emission, climate-resilient development pathways.

Green Financing

“Green Financing is to increase level of financial flows from the public, private and not-for-profit sectors to sustainable development priorities. ​A key part of this is to better manage environmental and social risks, take up opportunities that bring both a decent rate of return and environmental benefit and deliver greater accountability.” ​
(UN Environment)
Green financing is about integrating environmental and climate risks into financial decision-making. It helps investors identify responsible opportunities, encourages sustainable production and consumption, and redirects capital toward activities that preserve ecosystems and biodiversity.

Carbon Finance

“Carbon finance refers to resources provided to projects that generate greenhouse gas (GHG) emission reductions, tradable on the carbon market.”
(World Bank, EIB, Energypedia)
These mechanisms create revenue streams from emission reductions or carbon permit trading, improving the financial viability of low-carbon and climate-positive projects.

Biodiversity Finance

“Channeling financial investments — public and private — towards economic activities that enhance our stock of natural assets and encourage sustainable production and consumption.”
(CBD, 2021)
Under CBD Target 19, at least USD 200 billion per year should be mobilized by 2030 to implement national biodiversity strategies. Yet, the biodiversity finance gap remains around USD 700 billion annually — highlighting the urgent need to scale investments that protect and restore nature.

Forest Finance

“Forest finance encompasses all the actions required to secure adequate financial resources for the ongoing management of a forest-based​ enterprise and to ensure its financial viability and profitability.”
(FAO)​
This includes:
• REDD+ finance
• Forest Landscape Restoration (FLR)
• Deforestation-free finance

Each mechanism contributes to maintaining forest-based livelihoods, improving climate resilience, and safeguarding biodiversity.

Blended Finance

“Blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development.”
(Covergence).
It is a structuring approach that allows organizations with different objectives to invest alongside each other while achieving their own objectives, whether financial return, social impact, or a blend of both.

Publications

5th Finance Briefing: Brewing Solutions: Financial Pathways for EUDR-Compliant Coffee & Collaborative Action

Access to financial resources is crucial for promoting deforestation-free coffee supply chains and enhancing transparency. Smallholder coffee farmers, in particular, need support to implement sustainable land use practices and adopt…

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Session 3: Sustainable Finance Knowledge Journey

Presented by Climate&Company and Sustainable Agriculture for Forest Ecosystems (SAFE), this third session is a deep dive into innovative financial mechanisms driving sustainability. It is divided into two insightful sections:…

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Session 2: Sustainable Finance Knowledge Journey

The second session of the Sustainable Finance Knowledge Journey, presented by Climate&Company and Sustainable Agriculture for Forest Ecosystems (SAFE), explores key topics in sustainable finance through four insightful panel discussions….

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Session 1: Sustainable Finance Knowledge Journey

This first session of the Sustainable Finance Knowledge Journey, presented by Climate&Company and Sustainable Agriculture for Forest Ecosystems (SAFE), dives into critical aspects of sustainable finance through four insightful panels….
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Last updated on: October 2025

Region:

Luwero, Nakaseke, Kassanda, Mubende, Bukomansimbi, Kyotera, Omoro, and Nwoya

Target group:

Smallholder farmers, traders, state and non state actors, and processors

Key activities:
  • Capacity building of smallholder coffee farmers in production practices and sustainable land use management.
  • Establishing traceability system and facilitating access to sustainable financing 
  • Facilitate inclusive business partnerships between producer organizations and supply chain actors​ 
  • Promote multi-stakeholder cooperation​ 
Commodities:
SAFE_commodities_graphics_Green_Coffee
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Region:

Huánuco, Ucayali, Pasco and Junín

Target group:

Public and private stakeholders, especially exporting companies, cooperatives and smallholder producers

Key activities:
  • Strengthen the supply chains to meet EUDR requirements 
  • Facilitate access to sustainable finance and knowledge exchange
  • Training of smallholders to sustainable manage their production systems 
Commodities:
SAFE_commodities_graphics_Green_Coffee
SAFE_commodities_graphics_Green_Cocoa
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Region:

Ngozi and Kayanza 

Target group:

Smallholders

Key activities:
  • Training on the use of traceability tools and support on collection of geolocation data for EUDR compliance 
  • Support the development of a national coffee sector dashboard for traceability and transparency
  • Capacity building of smallholder coffee farmers in production practices and sustainable land use management.​ 
Commodities:
SAFE_commodities_graphics_Green_Coffee
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Region:

Centre, South West, Littoral, South, East and West regions

Target group:

Smallholder farmers, women, youth, and indigenous peoples

Key activities:
  • Develop inclusive business partnerships with the private sector 
  • Facilitate access to finance for sustainable business models 
  • Support and train farmers in open-source traceability systems 
  • Promote multistakeholder dialogues to improve legal and regulatory provisions 
Commodities:
SAFE_commodities_graphics_Green_Cocoa.svg
SAFE_commodities_graphics_Green_Coffee
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Region:

(Lower) Kafue Catchment Ecosystem

Target group:

Farmers and community forest management groups

Key activities:
  • Support community forest management groups in the
    sustainable management of natural resources and livelihood creation
  • Support farmers to produce soy in line with the EUDR and increase productivity, and implement transparency and traceability pilots
Commodities:
SAFE_commodities_graphics_Green_Wood.svg
SAFE_commodities_graphics_Green_Soy.svg
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Region:

Lampung, West Kalimantan, and Central Sulawesi

Target group:

Smallholder farmers, private sector, and civil society organizations along the value chains

Key activities:
  • Empowering Smallholder Farmers and Farmer Organizations by facilitating traceability and legality, building capacity on Good Agriculture Practices (GAP), and strengthening farmer organizations, ensuring inclusive support for both men and women farmers.
  • Promoting sustainable practices and collaboration by supporting village HCV/HCS conservation efforts, testing and strengthening the National Dashboard for traceability and legality, and fostering national and regional exchanges.
Commodities:
SAFE_commodities_graphics_Green_Cocoa.svg
SAFE_commodities_graphics_Green_PalmOil.svg
SAFE_commodities_graphics_Green_NaturalRubber.svg
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Region:

Son La, Gia Lai ​​

Target group:

Smallholder farmers and marginalized groups

Key activities:
  • Support coffee value chain actors
  • Foster deforestation-free, sustainable, and legal supply chains
Commodities:
SAFE_commodities_graphics_Green_Coffee
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Region:

Yangambi Biosphere Reserve, Salonga National Park North, Salonga National Park South, Virunga National Park, Kahuzi-Biéga National Park​

Target group:

Public and private sector

Key activities:
  • Promote sustainable agricultural practices
  • Minimize forest degradation
  • Prevent deforestation
Commodities:
SAFE_commodities_graphics_Green_NaturalRubber
SAFE_commodities_graphics_Green_Cocoa.svg
SAFE_commodities_graphics_Green_Coffee
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Region:

Provinces of Orellana and Sucumbíos

Target group:

Smallholder farmers, women, indigenous people and youth

Key activities:
  • Promoting Multi Stakeholder Dialogues
  • Improving traceabilty systems
Commodities:
SAFE_commodities_graphics_Green_Cocoa.svg
SAFE_commodities_graphics_Green_Coffee.svg
SAFE_commodities_graphics_Green_PalmOil.svg
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Region:

Xingu territory, State of Pará

Target group:

Family farmers

Key activities:
  • Improve market access, value creation, and access to sustainable finance
  • Integrate farmers into traceability systems
Commodities:
SAFE_commodities_graphics_Green_Beef.svg
SAFE_commodities_graphics_Green_Cocoa.svg
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Global activities
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